This means the applicant must carry out a community meeting or workshop facilitated by the council, notify surrounding landowners and ensure the community "has adequate time to consider and comment on the proposal" before lodging a planning proposal or DA.

Cr Richardson said 111 hectare Broken Head Rd site was within "an area of great value" and said the proposal should draw "the highest level" of community engagement.

"Broken Head and that area is the most biodiverse in the Byron Shire and one of the most biodiverse areas in the state," he said.

"We want to make sure anything that happens there enhances the environment."

A representative of the group of owners spoke in support of the staff recommendation during the council's Public Access.

One resident representing a group of community members asked councillors to defer their decision.

Former Byron mayor and past MLC Jan Barham told the council she opposed the planning proposal and the creation of new lots in the coastal erosion zone. Ms Barham said she would be lodging a formal complaint regarding the site next week.

She asked the council to "press pause" on the proposal to allow for "the due diligence that the community expects".

Councillors unanimously resolved to support the preparation of an amended planning proposal. A separate development application is seeking approval for an eco-resort on the property.